Answer :
The monthly payment is $242.44 for loan to paid off in 3 years.
Step-by-step explanation:
The amount borrowed = Principal = $8000
The rate of interest = 7.2%
Time (T) = 3 years
Now, Simple Interest = [tex]\frac{P\times R \times T}{100}[/tex]
[tex]\implies SI = \frac{8000 \times 7.2 \times 3}{100} = 1,728[/tex]
So, the total interest = $1728
Now, Amount to be paid = Principal + Interest
⇒ A = $8000 + $1728 = $8728
Also, 1 year = 12 months
⇒ 3 years = 3 x 12 months = 36 months
So, total amount to be paid in 36 months is $8728.
⇒The amount to be paid in 1 month is [tex](\frac{8728}{36} ) = 242.44[/tex]
Hence, the monthly payment is $242.44 if loan is to paid off in 3 years.